Philadelphia stands out as the most stable office market among the 15 largest U.S. markets heading into spring, with a year of occupancy gains bringing its office availability rate to 14.1%, the lowest in the nation, just ahead of Minneapolis at 14.2%.
While most major markets struggle with rising vacancies, Philadelphia is one of only three experiencing positive absorption—more space occupied than vacated—alongside Dallas-Fort Worth and New York. The region recorded 1.2 million square feet of net absorption over the past year, a 0.4% increase in inventory, outpacing the national recovery. In contrast, most top markets saw losses of 1 to 3 million square feet, with Boston and San Francisco suffering absorption rates of -1.6% and -1.4%, respectively. Unlike cities burdened by oversupply, Philadelphia’s limited speculative development in the 2010s helped shield it from the challenges facing markets like Boston.
However, obstacles remain. The region still has 11.3 million square feet more available office space than in early 2020, and economic uncertainty may impact its momentum in 2025.
Still, Philadelphia’s steady absorption signals resilience. Anchored by education, healthcare, and government sectors—industries less affected by remote work—the city remains better positioned than tech-heavy markets like San Francisco, where office demand continues to decline.
Wolf Commercial Real Estate (WCRE), is a leading New Jersey, Pennsylvania, and New York commercial real estate brokerage, advisory, and property management firm that specializes in healthcare, office, retail, land, industrial, and investment properties. For more information about healthcare, industrial, retail, office, land or other commercial properties, please call 856-857-6300 or send an email to info@wolfcre.com.
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